Hudbay Minerals has reached a deal with a Vancouver-based mining company to sell a mining project in the Yukon.
As part of the deal, Fireweed Zinc Ltd. will receive full ownership of the Tom & Jason mine project in the Yukon.
In exchange, Hudbay will receive around 3.6 million outstanding shares in Fireweed, making up around 16.7 per cent of the company’s overall ownership.
The Tom & Jason projects are a pair of zinc-lead-silver deposits located near each other in Yukon’s Selwyn Basin near the border with the Northwest Territories. Hudbay acquired both properties in 2006. Both properties are located within the Macmillan Pass project, an area already owned by Fireweed.
Along with the announcement, Fireweed announced a new set of mineral resource estimates for the new properties. According to the company’s CEO, the new findings are an improvement over the last resource estimate of the site, done in 2007 while Hudbay owned the project.
“Next summer we will execute a larger drill program to expand on these mineral resources and test other targets for new discoveries within our large project area,” said Brandon MacDonald, Fireweed CEO, in a press release.
Fireweed also announced plans on Feb. 8 to further explore the Macmillan Pass mine project.
